presentation 2019 28 January 2020 1 Disclaimer This document was - PowerPoint PPT Presentation

Annual results presentation 2019 28 January 2020 1

Disclaimer This document was originally prepared in Spanish. The English version published here is for information purposes only. In the event of any discrepancy between the English and the Spanish version, the Spanish version will prevail. This document has been prepared by Bankia, S.A. (“Bankia”) and is presented exclusively for information purposes. It is not a prospectus and does not constitute an offer or recommendation to invest. This document does not constitute a commitment to subscribe for, or an offer to finance, or an offer to sell, or a solicitation of offers to buy securities of Bankia, all of which are subject to internal approval by Bankia. Bankia does not guarantee the accuracy or completeness of the information contained in this document. The information contained herein has been obtained from sources that Bankia considers reliable, but Bankia does not represent or warrant that the information is complete or accurate, in particular with respect to data provided by third parties. This document may contain abridged or unaudited information and recipients are invited to consult the public documents and information submitted by Bankia to the financial market supervisory authorities. All opinions and estimates are given as of the date stated in the document and so may be subject to change. The value of any investment may fluctuate as a result of changes in the market. The information in this document is not intended to predict future results and no guarantee is given in that respect. This document includes, or may include, forward-looking information or statements. Such information or statements represent the opinion and expectations of Bankia regarding the development of its business and revenue generation, but such development may be substantially affected in the future by certain risks, uncertainties and other material factors that may cause the actual business development and revenue generation to differ substantially from our expectations. These factors include i) market conditions, macroeconomic factors, government and supervisory guidelines, ii) movements in national and international securities markets, exchange rates and interest rates and changes in market and operational risk, iii) the pressure of competition, iv) technological changes, v) legal and arbitration proceedings, and vi) changes in the financial situation or solvency of our customers, debtors and counterparties. Additional information about the risks that could affect Bankia ’ s financial position, may be consulted in the Registration Document approved and registered in the Official Register of the CNMV. Distribution of this document in other jurisdictions may be prohibited, therefore recipients of this document or any persons who may eventually obtain a copy of it are responsible for being aware of and complying with said restrictions. This document does not reveal all the risks or other material factors relating to investments in the securities/ transactions of Bankia. Before entering into any transaction, potential investors must ensure that they fully understand the terms of the securities/ transactions and the risks inherent in them. This document is not a prospectus for the securities described in it. Potential investors should only subscribe for securities of Bankia on the basis of the information published in the appropriate Bankia prospectus, not on the basis of the information contained in this document 2

CONTENTS 1 2019 HIGHLIGHTS 2019 RESULTS 2 3 ASSET QUALITY AND RISK MANAGEMENT 4 LIQUIDITY AND SOLVENCY 5 CLOSING REMARKS APPENDIX 3

ANNUAL RESULTS PRESENTATION 2019 Highlights In the second In the second year year of o of our Str ur Strategic ategic Plan we have d Plan we have demonstr emonstrated ated impor important tant advances in each of its key pillars… 1 2 3 Commercial activity boosted Efficency and cost control Accelerated reduction of NPAs Larger than expected Income from high value €2.5 bn reduction of NPAs synergies from the merger products increases in the year with BMN …allowing us, while maintaining the dividend, to increase our CET 1 FL ratio by 63 bps to 13.02% 4

ANNUAL RESULTS PRESENTATION 2019 Highlights Customers: Quality Quality indicators continue to increase and stand at maximum levels MYSTERY SHOPPING CUSTOMER SATISFACTION +0.4 Bankia 90.3 8.28 89.9 88.2 Global Sector 86.9 7.79 7.44 7.31 1H 18 2H 18 1H 19 2H 19 6.92 7.36 7.20 Source: Bankia .7.04 7.03 6.29 6.74 6.01 6.03 NPS BRANCHES (1) #1 VS 6.27 PEERS (1) 12M 2019 5.61 +2.6 p.p. 5.42 48.7% 46.1% 2012 2013 2014 2015 2016 2017 2018 2019 38.7% 37.2% Ranking 2016 2017 2018 2019 1 st Bankia 2 nd 2 nd 3 rd 1H 18 2H 18 1H 19 2H 19 Source: STIGA research on mystery shopping satisfaction Source: Bankia (1) Peers: Santander, BBVA, Caixabank, B. Sabadell & Bankinter The customer is at the center of our strategy 5 (1) “Net Promoter Score”. Retail customers’ recommendation rate index

ANNUAL RESULTS PRESENTATION 2019 Highlights Customer and digitalization More customers and more digital DIGITAL CUSTOMERS (1) CUSTOMERS NET GROWTH % of total customers Net growth STATEGI GIC PL PLAN AN +12.8 p.p. 65% 65% 243,000 2020E 53.3% 40.5% DEC 19 vs DEC 17 DEC 17 DEC 19 DIRECT INCOME DEPOSITS DIGITAL SALES Net growth % of total sales STRA RATEGI GIC PL PLAN AN +20.1 p.p. 35% 35% 190,000 2020E 36.0% 15.9% DEC 19 vs DEC 17 DEC 17 DEC 19 6 (1) Active customer aged over 18 who in the last 12 months has connected at least once to a digital channel (App, Bankia Online or Bankia Online-Companies). The denominator for the percentage is the number of customers aged over 18.

ANNUAL RESULTS PRESENTATION 2019 Highlights Digital transformation progress Assessment of our Digital Channels Key Milestones Bankia Bank ia Onli Online ne APP APP Bankia Ban kia Online Online Emp Empresa resas Bankia Gestión 86.5 84.6 91.8 86.3 89.8 Experta Online 80.9 84.0 88.0 77.0 81.2 84.5 74.9 2017 2018 1H 2019 2H 2019 2017 2018 1H 2019 2H 2019 Bankia Online 2017 2018 1S2019 2S 2019 2017 2017 2018 2018 1H 2019 1S2019 2S 2019 2H 2019 2017 2018 1S2019 2S 2019 Autónomos AQMETRIX TOP 5 4Q 19 #2 #2 (1) #2 Bankia Ban kia Online Online APP APP Ban Bankia kia Online Online Emp Empresa resas Hipoteca ON 1 Peer 1 AA 1 Peer 1 AAA 1 Peer 1 AAA 2 Peer 2 AB 2 BANKIA AA 2 BANKIA AB € 2 BANKIA AB 3 Peer 2 BA 3 Peer 2 BB Property Valuation 2 Peer 3 AB 4 Peer 3 BA 4 Peer 3 BC Tool 3 Peer 4 BA 5 Peer 4 BB 5 Peer 4 BC (1) Same qualification Peers: Caixa, Santander, BBVA, Sabadell, Bankinter, Abanca, Kutxabank 7

ANNUAL RESULTS PRESENTATION 2019 Highlights High value products Lead position in net inflows to mutual funds during the year NET INFLOWS MUTUAL FUNDS (1) MUTUAL FUNDS Assets under management +74% €mn +16.8% €bn 911 1,543 22.3 20.7 885 19.1 632 2018 1H 19 2H 19 2019 DEC 18 JUN 19 DEC 19 MARKET MARKE T SH SHARE ARE N NET IN ET INFL FLOWS OWS OR RANKING (1) #1 2019 MUTUAL FUNDS - MARKET SHARE * MUTU MU TUAL AL FUND FUNDS: S: SE SECTOR RANKING STRA RATEGI GIC P C PLAN AN 7. 7.20% 20% 22.5% 2020E 6.55% 13.4% 11.8% 10.7% 5.2% 7.05% +50 bps DEC 18 DEC 19 BANKIA PEER 1 PEER 2 PEER 3 PEER 4 * Source: Inverco 8 (1) Source: Inverco. Market share calculated as a percentage of net positive inflows. (2) Peers: Santander AM, Mutuactivos, Ibercaja Gestión & Kutxabank Gestión.

ANNUAL RESULTS PRESENTATION 2019 Highlights High value products Positive dynamics in other high value products INSURANCE PREMIUMS - NEW PRODUCTION CARDS TURNOVER YOY variation (%) In-store credit and debit cards - YOY variation (%) NON-LIFE NON LIFE +24% LIFE LIFE +29% +14.7% +12.8% +26.2% DEC 18 vs DEC 17 DEC 19 vs DEC 18 +1.4% CARDS TURNOVER- MARKET SHARE * DEC 18 vs DEC 17 DEC 19 vs DEC 18 12.0% 12.4% +0.4 p.p. DEC 18 SEP 19 BANK ASSURANCE - MARKET SHARE (TOTAL RISK) ** CARDS STOCK - MARKET SHARE * 6.53% 6.56% +3 bps STRA RATEGI GIC PL PLAN AN SEP 18 9.0% 9. 0% SEP 19 8.6% 8.2% 2020E +0.4 p.p. ** Source: ICEA SEP 19 DEC 18 9 * Source BoS. Last available market share

ANNUAL RESULTS PRESENTATION 2019 Highlights Credit stock Performing credit stock increases improving our mix PERFORMING CREDIT STOCK PERFORMING CREDIT STOCK MIX HOME MORTGAGES + CONSUMER + COMPANIES + DEVELOPERS HOME MORTGAGES + CONSUMER + COMPANIES + DEVELOPERS +0.3 €bn 2017 2019 2020 SP +3.0 Home mortgages 66% 61% 58% (3.3) +0.6 HOME Consumer 4% 5% 5% MORTGAGES CONSUMER COMPANIES (1) 106.7 106.4 Companies & Developers 30% 34% 37% Note : 2017 includes BMN DEC 19 DEC 18 10 (1) Includes performing credit stock of the developer segment

ANNUAL RESULTS PRESENTATION 2019 Highlights Consumer lending Pre-approved consumer loan model continues to be reflected in double digit growth NEW CONSUMER LENDING CONSUMER LENDING STOCK CAGR AGR 17-20 20 +12.5% €mn +15.8% €bn SP SP +16.2% +16. 2% 1,371 2,647 5.4 5.0 2,286 4.8 1,276 1H 19 2H 19 2019 2018 DEC 18 JUN 19 DEC 19 NEW CONSUMER LENDING - MARKET SHARE (1) CONSUMER LENDING STOCK - MARKET SHARE (1) STRA RATEGI GIC PL PLAN AN 6. 6.6% 6% 5.58% 5.88% 2020E 6.42% 7.26% +30 bps +84 bps DEC 18 NOV 19 * DEC 18 NOV 19 * Start of commercial activity of the consumer lending JV 11 (1) Source: BoS. Accumulated new lending market share. (* last available market share)